How does Compound help startup founders and employees manage their finances?
Co-founder & CEO at Compound
Risk is a tricky thing to quantify.
I know that when I hear people talk about risk tolerance, the voice in my head goes something like, "Um, I'm not really sure if I'm a 4 or 7 on the risk scale. These numbers seem arbitrary to me and rather abstract."
This led us to ask the question, in thinking about asset allocation planning in general, about how we can make it more concrete so you can better understand the implications of the decisions you're making.
One way we do this is by making your implicit assumptions explicit. We work with you to help you understand what you may believe about the future and how confident you are in your beliefs (and where your confidence really stems from). Writing out your big ticket investment decisions (and walking through tradeoffs) can really help you minimize your regret over time.
Beyond this, though, we have a menu of resources that may be useful (from collared options to diversifying into alts to making sure you have the appropriate tax-advantaged entities set up). The truth is there's no one way to do asset allocation but we work with you in a personalized way to apply the menu of strategies to your personal situation.
To answer more directly, we do a ton of post-liquidity diversification strategies where we show you the implications of holding a concentrated positions and build tax-aware scenario plans to help you model the implications of various decisions.